Bidvest has been making international headlines; this time as a result of our entry to the Boston Consulting Group’s Global Challengers list. But what does this mean for the business and our people?

The tougher the market, the more important the basics become; tight control over your working capital:
stock, debtors and creditors; maximising your income and gross profits while minimising your expenses and capital expenditure.

Cash is king and we need to continue focusing on our return on funds employed; ROFE rules! Reading about international recognition may be confusing when you’ve spent years sticking to the simple ABCs of business. But sometimes it pays to unravel the jargon and check the conclusions of the corporate trend-spotters.

For example, the Boston Consulting Group (BCG) has done valuable work by drawing attention to fundamental changes in the world of business and the impact of a new generation of companies from so-called RDEs or rapidly developing economies. Increasingly, these up-and-coming businesses demand comparison with long-established multinational corporations in the developed world.

BCG publishes a list of 100 Global Challengers, all well represented in emerging markets, all with the potential to shake up the old economic order. This year, Bidvest made the list, one of three new South African entrants.

The significance for Bidvest is that here we have independent external confirmation that after our lost year in 2009 we are back on track and got it right by seeking a rapid return to growth rather than retreating into our shell. BCG studies also provide further confirmation that the world is changing fast and we have to change with it – or ahead of it – if we wish to succeed.

In this new world, successful businesses find new and better ways of getting the job done. They diversify across industries and borders while remaining ‘financially fit’.

Adaptable businesses that make the most of emerging market opportunities enter a new decade from a position of strength and can look forward to renewed growth.

The BCG consultants say the appearance on the list of three South African companies suggests Africa is a region worth watching as well as other emerging markets. Bidvest is acknowledged as the largest food distributor outside the USA, with additional interests in freight, manufacturing and automotive sales. Our strong footprint across Africa, Europe, Asia and Australia also gets positive recognition. Our acquisition of Seafood Holdings announced in December adds to our strong portfolio in the UK and we look forward to their contribution.

International recognition like this is satisfying. I suppose it is reassuring to have global developments working in your favour; however, it is our people who deserve international acclaim for the work they put in and the results they achieve. In my view, Bidvest succeeds because of its people, not because of geography, not because we fit nicely into a new business wave and not because we are part of a growing trend.

Outside recognition is fine, but let’s keep our feet on the ground, keep working hard and keep up recent momentum. Let’s take advantage of economic improvement, seize opportunities as they arise and retain our confidence. RDEs may have lots going for them, but getting the ABCs right still sounds good to me.